crm reporting

8/8/2019 CRM Reporting

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Learning ObjectivesLearning ObjectivesDefine Customer Relationship ManagementDefine Customer Relationship Management

Explain how to identify customer Explain how to identify customer relationships with the organizationrelationships with the organization

Understand interactions with the currentUnderstand interactions with the current

customer basecustomer base

Outline the process of capturing customer Outline the process of capturing customer

datadata



Learning ObjectivesLearning ObjectivesDescribe the use of technology to store andDescribe the use of technology to store and

integrate customer dataintegrate customer data

Describe how to identify the best customersDescribe how to identify the best customers

Explain the process of leveraging customer Explain the process of leveraging customer

information throughout the organizationinformation throughout the organization

Creating customer value, satisfaction, andCreating customer value, satisfaction, and

loyaltyloyalty



What is CRM?

What is CRM?

A companyA company--wide business strategywide business strategy

designed to optimize profitability,designed to optimize profitability,revenue, and customer satisfaction byrevenue, and customer satisfaction by

focusing on highly defined and precisefocusing on highly defined and precise

customer groups.customer groups.

It is the ultimate goal of a new trend inIt is the ultimate goal of a new trend in

marketingmarketing



What is CRM?

What is CRM?

The difference between CRM andThe difference between CRM and

traditional mass marketing can betraditional mass marketing can becompared to shooting a rifle and acompared to shooting a rifle and a

shotgun.shotgun.



What is CRM?

What is CRM?

Shotgun Approach Shotgun Approach ± ± scatteringscattering

messages far and wide across themessages far and wide across thespectrum of mass mediaspectrum of mass media

Rifle Approach Rifle Approach ± ± CRM marketersCRM marketers

now are homing in on ways tonow are homing in on ways toeffectively communicate with eacheffectively communicate with each

individual customer individual customer



The CRM Cycle

The CRM Cycle

Identify customer

relationship

Understand interactions

with the current

customer base

Capture customer databased on interactions

Store and integrate

customer data using

information technology

Identify best customers

Leverage customer

information



Identify CustomerIdentify Customer

RelationshipsRelationships



Custom

er CentricCustom

er CentricIt is an internal managementIt is an internal management

philosophy similar to the marketing philosophy similar to the marketingconcept. Under this philosophy theconcept. Under this philosophy the

company customizes its product andcompany customizes its product and

service offering based on dataservice offering based on data

generated through interactions betweengenerated through interactions between

the customer and the company.the customer and the company.



The Playstation web site is designed toThe Playstation web site is designed to

create a community of users who cancreate a community of users who can

join Playstation Underground where join Playstation Underground where

they will ³feel like they belong to athey will ³feel like they belong to a

subculture of intense gamers.´ Tosubculture of intense gamers.´ Toachieve this objective, the web siteachieve this objective, the web site

offers online shopping, opportunities tooffers online shopping, opportunities to

try new games , customer support, andtry new games , customer support, andinformation on news, events, andinformation on news, events, and

promotions. promotions.



LearningLearningIn customer relationship managementIn customer relationship management

environment involves collectingenvironment involves collectingcustomer information throughcustomer information through

comments and feedback on product andcomments and feedback on product and

service performance.service performance.



K now

led

ge Managem

entK

now

led

ge Managem

ent--is a process by which customer is a process by which customer

information is centralized and shared ininformation is centralized and shared inorder to enhance the relationshiporder to enhance the relationship

between customers and the between customers and the

organization. Information collectedorganization. Information collected

includes experiential observations,includes experiential observations,

comments, customer actions, andcomments, customer actions, and

qualitative facts about the customer.qualitative facts about the customer.



Empow

erm

entEm

pow

erm

ent--is the latitude organizations give their is the latitude organizations give their

representatives to negotiate mutuallyrepresentatives to negotiate mutuallysatisfying commitments withsatisfying commitments with

customers.customers.



Interacti

on

Interacti

on

--is the point at which a customer andis the point at which a customer and

company representative exchangecompany representative exchange

information and develop learninginformation and develop learning

relationship. With CRM the customer,relationship. With CRM the customer,

and not the organization, defines theand not the organization, defines the

terms of the interaction. Often byterms of the interaction. Often by

stating his or her preferences.stating his or her preferences.



Interacti

on

Interacti

on

The organization responds by designingThe organization responds by designing

products and service around customers products and service around customers

desired experiences.desired experiences.



Identify CustomerIdentify Customer

Relatio

nsh

ipsRelatio

nsh

ips

The success of CRMThe success of CRM ± ± building lasting building lasting

and profitable relationshipsand profitable relationships ± ± can becan be

directly measured by the effectivenessdirectly measured by the effectiveness

of the interaction between the customer of the interaction between the customer

and the organization.and the organization.



Understand Understand Interactions with theInteractions with the

Current CustomerCurrent CustomerBaseBase



Understand Interactions with Understand Interactions with

th

e current Custom

er Baseth

e current Custom

er Base

The interaction between the customer The interaction between the customer

and the organization is the foundationand the organization is the foundation

on which a CRM system is built.on which a CRM system is built.




th

e current Custom

er Baseth

e current Custom

er Base

Only through effective interactions canOnly through effective interactions can

organizations learn about theorganizations learn about the

expectations of their customers,expectations of their customers,

generate and manage knowledge aboutgenerate and manage knowledge about

them, negotiate mutually satisfyingthem, negotiate mutually satisfying

commitments, and build longcommitments, and build long--termterm

relationships.relationships.




th

e current Custom

er Baseth

e current Custom

er Base

Companies that effectively manageCompanies that effectively manage

customer interactions recognize thatcustomer interactions recognize that

customers provide data to thecustomers provide data to the

organization that affect a wide varietyorganization that affect a wide variety

of touch points.of touch points.

**touch pointstouch points ± ± all possible areas of a businessall possible areas of a business

where customers communicate with that businesswhere customers communicate with that business




th

e current Custom

er Baseth

e current Custom

er Base

Interactions

WEB

Points of Sale

Kiosk

Customer Service

Delivery, Installation

Survey

Product Registration

CUSTOMER



Capture CustomerCapture Customer

DataData



CAPTU

R E

CU

ST

OME

R DAT

ACAPTU

R E

CU

ST

OME

R DAT

A

Vast amounts of data can be obtainedVast amounts of data can be obtainedfrom the interaction between anfrom the interaction between an

organization and its customers.organization and its customers.

Channel interactionsChannel interactions -- include storeinclude storevisits, conversations, and wirelessvisits, conversations, and wireless

communications, such as cell phonecommunications, such as cell phoneconversations and satelliteconversations and satellitecommunications.communications.



CAPTU

R E

CU

ST

OME

R DAT

ACAPTU

R E

CU

ST

OME

R DAT

A

Interactions between the company andInteractions between the company andthe customer facilitate collection of the customer facilitate collection of

large amounts of data.large amounts of data.

The physical as well as theThe physical as well as the psychological consumption of the psychological consumption of the

firm¶s product or service constitutes anfirm¶s product or service constitutes anadditional touch point for customer additional touch point for customer interaction.interaction.



CAPTU

R E

CU

ST

OME

R DAT

ACAPTU

R E

CU

ST

OME

R DAT

AThe unique dimension of the productThe unique dimension of the product

or service interaction is that it enablesor service interaction is that it enables

customer data to be collected during thecustomer data to be collected during theactual use of the product.actual use of the product.

Even more important are data relatedEven more important are data relatedto the performance of the product andto the performance of the product andthe method customers use to reportthe method customers use to report performance performance--related issues.related issues.



IINN

FF

OO

R R

MM

AA

TT

II

OO

NN

WebWeb

Point of SalePoint of Sale

K iosk K iosk

Customer ServiceCustomer Service

Delivery, installationDelivery, installation

Product use, consumptionProduct use, consumption

SurveySurvey

Product RegistrationProduct Registration



Store and IntegrateStore and IntegrateCustomer DataCustomer Data

using Inf ormationusing Inf ormationTechnologyTechnology



DataW

areho

useDataW

areho

useA central repository for data fromA central repository for data from

various functional areas of thevarious functional areas of the

organization that is stored andorganization that is stored and

inventoried on a centralized computer inventoried on a centralized computer

system so that the information can besystem so that the information can be

shared across all functionalshared across all functional

departments of the business.departments of the business.



DatabaseDatabaseA collection of data, especially one thatA collection of data, especially one that

can be accessed and manipulated bycan be accessed and manipulated by

computer software.computer software.

The core of the data warehouse.The core of the data warehouse.



DatabaseDatabaseCRM database focuses on collectingCRM database focuses on collecting

vital statistics on consumers, their vital statistics on consumers, their

purchasing habits, transactions purchasing habits, transactions

methods, and product usage in amethods, and product usage in a

centralized repository that is accessiblecentralized repository that is accessible

by all functional areas of a company. by all functional areas of a company.



Store and Integrate CustomerStore and Integrate Customer

DataDataThe foundation of the data warehouseThe foundation of the data warehouse

is the database, which begins withis the database, which begins with

collecting the ³right´ information.collecting the ³right´ information.

The first step is to develop a list.The first step is to develop a list.

1.1. Response ListResponse List2.2. Compiled ListCompiled List




DataData1.1. Response ListResponse List ± ± a customer list thata customer list that

includes the names and addresses of includes the names and addresses of

individuals who have responded to anindividuals who have responded to an

offer of some kind, such as by mail,offer of some kind, such as by mail,

telephone, directtelephone, direct--response television,response television,

product rebates, contests or product rebates, contests or

sweepstakes, or billing inserts.sweepstakes, or billing inserts.




DataData2.2. Compiled ListCompiled List ± ± a customer list that wasa customer list that was

developed by gathering names anddeveloped by gathering names and

addresses from telephone directories andaddresses from telephone directories andmembership rosters, usually enhancedmembership rosters, usually enhanced

with information from public records,with information from public records,

such as census data, auto registrations,such as census data, auto registrations, birth announcements, business start birth announcements, business start--ups,ups,

or bankruptciesor bankruptcies




DataDataA customer database becomes evenA customer database becomes even

more useful to marketing managersmore useful to marketing managers

when it is enhanced to include morewhen it is enhanced to include more

than simply a customer¶s or prospect¶sthan simply a customer¶s or prospect¶s

name, address, telephone number, andname, address, telephone number, and

transaction history.transaction history.




DataDataData enhancement involves purchasingData enhancement involves purchasing

information on customers or prospectsinformation on customers or prospects

to better describe their needs or to better describe their needs or

determine how responsive they mightdetermine how responsive they might

to marketing programs. It typicallyto marketing programs. It typically

includes demographic, lifestyle, or includes demographic, lifestyle, or

behavioral information. behavioral information.



Identifying theIdentifying the

BestBestCustomersCustomers



Identifying t

he Best Cust

omers

Identifying t

he Best Cust

omers

To be successful, companies mustTo be successful, companies must

identify customers who yield highidentify customers who yield high

profits or potential profits. profits or potential profits.



Identifying t

he Best Cust

omers

Identifying t

he Best Cust

omers

Significant amounts of data must beSignificant amounts of data must be

gathered from customers, stored andgathered from customers, stored and

integrated in the data warehouse, andintegrated in the data warehouse, and

then analyzed and interpreted for then analyzed and interpreted for

common partners who are differentcommon partners who are different

from other customer segments.from other customer segments.



Data MiningData MiningIt is used to find hidden patterns andIt is used to find hidden patterns and

relationships in the customer datarelationships in the customer data

stored in the data warehouse.stored in the data warehouse.

A data analysis approach that identifiesA data analysis approach that identifies

pattern of characteristics that relate to pattern of characteristics that relate to particular customers or customer particular customers or customer

groups.groups.



Mod

elingMod

elingIt involves building a model in aIt involves building a model in a

situation where the answer is knownsituation where the answer is known

and then applying the model to another and then applying the model to another

situation where the answer is unknown.situation where the answer is unknown.



Custom

er Segm

entatio

nCustom

er Segm

entatio

nThe process of breaking large groupsThe process of breaking large groups

of customers into smaller, moreof customers into smaller, more

homogenous groups. It generates ahomogenous groups. It generates a

³profile´ or picture of the customer¶s³profile´ or picture of the customer¶s

similar demographic, geographic, andsimilar demographic, geographic, and

psychographic traits as well as their psychographic traits as well as their

previous purchase behavior. previous purchase behavior.



RecencyRecency--FrequencyFrequency--MonetaryMonetary

AnalysisAnalysisIdentifies those customers most likelyIdentifies those customers most likely

to purchase again because they haveto purchase again because they have

bought recently, bought frequently, or bought recently, bought frequently, or

spent a specified amount of money withspent a specified amount of money with

the firm.the firm.



Lifetim

e Value AnalysisLifetim

e Value AnalysisA data manipulation technique thatA data manipulation technique that

projects the future value of the projects the future value of the

customer over a period of years usingcustomer over a period of years using

the assumption that marketing to repeatthe assumption that marketing to repeat

customers is more profitable thancustomers is more profitable than

marketing to firstmarketing to first--time buyers.time buyers.



Pred

ictive Mod

elingPred

ictive Mod

elingA data manipulation technique inA data manipulation technique in

which marketers try to determine,which marketers try to determine,

based on some past set of occurrences, based on some past set of occurrences,

what the odds are that some other what the odds are that some other

occurrence, such as a response or occurrence, such as a response or

purchase, will take place in the future. purchase, will take place in the future.



Leverage CustomerLeverage Customer

Inf ormationInf ormation



Cam

paign Managem

entCam

paign Managem

entDeveloping product or serviceDeveloping product or service

offerings customized for theofferings customized for the

appropriate customer segment and thenappropriate customer segment and then

pricing and communicating these pricing and communicating these

offerings for the purpose of enhancingofferings for the purpose of enhancing

customer relationships.customer relationships.



Retaining Lo

yal Custom

ersRetaining Lo

yal Custom

ersLoyalty programs reward loyalLoyalty programs reward loyal

customers for making multiplecustomers for making multiple

purchases. The objective is to build purchases. The objective is to build

longlong--term mutually beneficialterm mutually beneficial

relationships between a company andrelationships between a company and

its key customers.its key customers.



CrossCross--Selling Other ProductsSelling Other Products

and

Servicesand

ServicesCRM provides many opportunities toCRM provides many opportunities to

crosscross--sell related products. Marketerssell related products. Marketers

can use the database to match productcan use the database to match product

profiles and consumer profiles so that profiles and consumer profiles so that

they can crossthey can cross--sell customers productssell customers products

that match their demographic, lifestyle,that match their demographic, lifestyle,

or behavioral characteristics.or behavioral characteristics.



Designing Targeted MarketingDesigning Targeted Marketing

Comm

unicatio

nsComm

unicatio

nsUsing transaction and purchase data, aUsing transaction and purchase data, a

database allows marketers to track database allows marketers to track

customers¶ relationships to thecustomers¶ relationships to the

company¶s products and services andcompany¶s products and services and

modify the marketing messagemodify the marketing message

accordingly.accordingly.



Reinf orcing CustomerReinf orcing Customer

Purch

ase Decisio

nsPurch

ase Decisio

nsCRM offers marketers an excellentCRM offers marketers an excellent

opportunity to reach out to customers toopportunity to reach out to customers to

reinforce the purchase decision byreinforce the purchase decision by

thanking customers for their purchasesthanking customers for their purchases

and telling them they are important,and telling them they are important,

marketers can help cement a longmarketers can help cement a long--term,term,

profitable relationship. profitable relationship.



Inducing Product Trial by New Inducing Product Trial by New

Custom

ersCustom

ersAlthough significant time and moneyAlthough significant time and money

are expended on encouraging repeatare expended on encouraging repeat

purchases by the best customers, a purchases by the best customers, a

marketing database is also used tomarketing database is also used to

identify new customers.identify new customers.



Increasing Effectiveness of Increasing Effectiveness of

Distributio

n Ch

annel MarketingDistributio

n Ch

annel MarketingWith CRM databases, manufacturers nowWith CRM databases, manufacturers now

have tool to gain insight into who is buyinghave tool to gain insight into who is buying

their products. Instead of simply unloadingtheir products. Instead of simply unloading products into the distribution channel and products into the distribution channel and

leaving marketing and relationship buildingleaving marketing and relationship building

to dealers, auto manufacturers today areto dealers, auto manufacturers today areusing websites to keep in touch with their using websites to keep in touch with their

customers or prospects.customers or prospects.



Im

pro

ving Custom

er ServiceIm

pro

ving Custom

er ServiceMany companies are using CRMMany companies are using CRM

techniques to service customers better techniques to service customers better

by hosting online feedback forums and by hosting online feedback forums and

chat rooms where users can discuss andchat rooms where users can discuss and

debate products.debate products.

Allowing customers much freer accessAllowing customers much freer access

to the company.to the company.



Privacy Co

ncerns and

CRMPrivacy Co

ncerns and

CRMBefore rushing out to invest in a CRMBefore rushing out to invest in a CRM

system and build a database, marketerssystem and build a database, marketers

should consider consumer¶s reactionsshould consider consumer¶s reactions

to the growing use of databases.to the growing use of databases.



Privacy Concerns and CRMPrivacy Concerns and CRM

Although database technology enablesAlthough database technology enables

marketers to compile ever marketers to compile ever--richer richer

information about their customers thatinformation about their customers that

can be used to build and managecan be used to build and manage

relationships, if these customers feelrelationships, if these customers feel

their privacy is being violated, then thetheir privacy is being violated, then the

relationship becomes a liability.relationship becomes a liability.

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